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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Shanghai Pudong -- Veolia Water Corporation, Ltd.
Project ID
4876
Fiscal year
2004
Status
Not Active
Guarantee holder
Compagnie Générale des Eaux
Investor country
France
Host country
China
Environmental category
A
Sector
Water and Wastewater
Gross exposure
 $70.0 million
Project type
Non-SIP
MIGA issued a guarantee of $70 million to Compagnie Générale des Eaux of France for its $245 million equity investment in Shanghai Pudong–Veolia Water Corporation, Ltd. of China. The guarantee is for a period of 15 years and provides coverage against the risk of expropriation.

Compagnie Générale des Eaux, a wholly-owned subsidiary of Veolia Environnement, purchased a 50 percent equity interest in Shanghai Municipal Waterworks Pudong Co., Ltd. from the state-owned Shanghai Water Asset Management and Development Co., Ltd., creating the joint-venture Shanghai Pudong-Veolia Water Corporation, Ltd. The joint-venture will be responsible for the treatment, distribution and sale of potable water, and for the maintenance of service facilities. The project currently has distribution rights for a 1,700 km network capable of supplying 1.3 million cubic meters of water daily to more that 1.7 million people living in the Pudong district.

The project seeks to improve the supply and quality of drinkable water to the rapidly growing 1.7 million population living in the Pudong district of Shanghai. The investor will bring managerial and technical expertise to the existing operations. Compagnie Générale des Eaux will be updating the information systems, which will allow online management of the whole network, establish a water control quality system, improve water purification techniques, and install instruments to monitor potential leakage and damage.

 
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